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18 National Newsagent - September 2006 CIRCULATION the variables -- consumer purchase behaviour, cover, content, competitor behaviour, weather, the economy... all creating volatility in outlet sales. There is a point where a publisher makes a commercial decision on what print run is right. The real question is, How do we change the way we manage the whole supply chain to reduce waste and sell even more? If anyone can answer that, give me a call. However, all three stakeholders (agents, publishers and their distributors) must play a role. What is good for the publisher/ distributor is not always good for the newsagent... and vice versa. What is the outlook for magazines -- any new launches planned? ACP is always looking at growth. Stay tuned. Connections focuses on newsagent education. Why? This is simple. It's the agents who invest time in learning and in developing their business and sta that are successful. I get excited by seeing agents grow and develop by working with the Connections program. ACP will continue to invest in agent development because of the long term value we place on the channel. Ultimately, agents need to take responsibility for their own destiny. Connections is a tool to assist this process -- it's not a solution in itself. What about NSDP -- is there a future? The only thing certain is change. The program has opportunities that I am looking at as we speak. We will have a clear position on the future for NSDP in the short term. Do you think large corporations have unrealistic expectations as to what can be expected of small and very small businesses? For example, is it unrealistic to expect them to 'carry' thousands of dollars of stock on spec, or to have sophisticated IT systems? We live and breathe in a competitive environment. Big or small, in any industry you have to be competitive. Ultimately, the consumer will choose. Do we have unrealistic expectations? I don't think ACP does. We spend a lot of resources within this channel with our own programs and via the MPA category initiative to help newsagents, but ultimately they will choose their own destiny. Should agents be forced to be oversupplied? My view here is simple. All stakeholders in this value chain must make money. Otherwise the chain breaks and the consumers go elsewhere -- like online. We have to create a supply chain that adds value, not takes it away. Whilst some say oversupply is a problem (and in some cases it is), others say ine cient newsagents are just as bad. All stakeholders must add value. It's a simple answer in theory. In practice we have 100 years of history to break down. If newsagents are paying too much for their businesses -- as you have suggested (in answer to the complaints of some struggling newsagents) -- why does the market not sort this out? Are there increasing incidences of businesses going bad, faster turnover of owners -- ie has ACP seen noticeable trends to indicate they pay too much? What future is there for the network and the myriad of small outlets? Let me put it di erently. A value of a business is what someone is prepared to pay. If they think it's fair, then there are no problems. The real problem is, are new agents given all the facts? Too many times I hear complaints about how this industry works with contracts, supply, payment terms etc. Potential buyers of any small business should conduct due diligence and then make an informed decision about being a newsagent. In essence, good operators who understand the competitive environment they are playing in, develop a sound business plan and invest accordingly will do well. Others who still quote the good old days of regulation and spend time blaming the world won't last long. GIVE YOURSELF AND YOUR EMPLOYEES VERY LOW COST INSURANCE PROTECTION • No entry or exit fees • Access to wholesale fund management fees • Members can consolidate all their superannuation into a single fund • Life and income protection insurance at group premium rates For further details please call Anthony Curtis on (02) 8969 7500